2008 (10) TMI 337

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....UDGMENT The judgment of the court was delivered by H. L. Dattu C. J.- The Revenue is before us, being aggrieved by the orders passed by the Income-tax Appellate Tribunal, Cochin Bench, in I.T.A. No. 227(Coch)/1999, dated June 20, 2003. 2. The brief facts are : The assessee is Kerala Financial Corporation, established under the State Financial Corporations Act. It is engaged in the busines....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... no requirement as such to maintain the reserve created. The assessing authority has not accepted this thinking of the assessee. 4. Aggrieved by the orders passed by the assessing authority, the assessee was before the first appellate authority. 5. Before the first appellate authority, it was the stand of the assessee, that the condition regarding maintenance of reserve was incorporated only....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s court in I. T. A. No. 191 of 2000. This court had accepted the assessee's claim and, accordingly, had allowed the assessee's appeal. 8. The findings and conclusions reached by this court in the case of Kerala Financial Corporation v. CIT [2003] 261 ITR 708 (Ker) I. T. A. No. 191 of 2000, decided on February 14, 2003 are as under (page 720) : "Therefore, we find considerable force in the su....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gislature intended to confer the benefit of the pro-vision only if it continued to maintain the reserve. In the absence of any expression indicating such a requirement by the assessee and in view of the fact that such a requirement was made expressly clear by an amendment brought about by the Finance Act, 1997, we have no hesitation to hold that such a requirement made explicitly clear both by the....